What has happened to the level of prices over time

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You have just invented a time machine and can go back to any year you want. You have a $10 bill that you can bring with you. Suppose your only goal is to buy as much candy with your $10 as possible. Assuming that candy prices have behaved just like the US CPI over time, which year would you rather go back to: 1985, 1975 or 1965? Why? [Hint: what piece of information is ost relevant to answering this question - the level of prices in the three years, or the inflation rate in the three years? What has happened to the level of prices over time in the US since 1945?]

Reference no: EM131246233

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